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Figure 10.2
Sample Ask and Bid Price Window |
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The spread is the difference between those two prices, in this case 1/8 of a point. If you buy this stock and the price never moves before you sell it, your loss will equal the spread. |
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Figure 10.3 displays how the spread affects your P&L. |
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Figure 10.3
How the Spread Affects P&L |
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